Didn't ultimately Facebook set the IPO price? And it seems they set it about perfectly to maximize proceeds from the IPO.

/MS Withholding information from certain selected clients prior to the IPO is another story.

Generally, the price is set by the underwriter..

From wikipedia: A syndicate of banks (the lead managers) underwrite the transaction, which means they have taken on the risk of distributing the securities.

Underwriters make their income from the price difference (the "underwriting spread") between the price they pay the issuer and what they collect from investors or from broker-dealers who buy portions of the offering.

I would love to see a reasonable analysis that supports a PPS of $66. I just don't see it. FB is at its zenith right now and they only made a billion last year. A PPS of 66 puts the P/E somewhere around 180 to 1. For the sake of comparison, the industry average is about 15 to 1. Add in the growing trend to mobile devices that cuts into add revenue along with the inevitable competition that will bite into market share...........I'm not seeing it. Guys saying it will either have a vested interest (that doesn't align with the potential investors) or are just stupid.

Didn't ultimately Facebook set the IPO price? And it seems they set it about perfectly to maximize proceeds from the IPO.

/MS Withholding information from certain selected clients prior to the IPO is another story.

Generally, the price is set by the underwriter..

From wikipedia: A syndicate of banks (the lead managers) underwrite the transaction, which means they have taken on the risk of distributing the securities.

Underwriters make their income from the price difference (the "underwriting spread") between the price they pay the issuer and what they collect from investors or from broker-dealers who buy portions of the offering.

Ultimately it is always the Issuer's decision and Facebook set the price on the top end of the suggested range. The underwriters suggest the range and the Issuer sets up a special board (or sometimes the full board) to decide on the IPO price. FB tried to push a higher price, but initial investors were not impressed, so FB settled on $38.

Issuers certainly receive feedback from the underwriters (who potentially could withdraw from the issuance), but the Issuer sets the price.